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The European Leisure Travel Industry - Europe - June 2017

Published By :

Mintel

Published Date : Jul 2017

Category :

Travel Services

No. of Pages : N/A

The major European leisure travel companies like TUI and Thomas Cook are moving away from being mere intermediaries towards being travel-service providers, notably of own-branded hotels and cruise ships.

Table of Content

INTRODUCTION
Key findings

DATA SOURCES

ABBREVIATIONS

ISSUES IN THE MARKET
Deceptive booking practices
Intercity bus travel
Sharing-economy impact
Brand consolidation
Destination trends

GLOBAL SUMMARY
Population ageing
Figure 1: Population aged 60 & over in Europe & by selected country, 2015, 2030 & 2050
Immigration will have only a minor impact
Implications for European leisure travel industry
Economy
Figure 2: Overview of World Economic Outlook projections, % change, unless noted otherwise, April 2017
Exchange rates
Figure 3: Forecasted exchange rates, 3 months & 12 months in the future, 11 April 2017
Tourism flows
Figure 4: Tourism arrivals* (m) by major European country, 2012-20
Incoming versus domestic tourism
France
Figure 5: France – Travel & tourism: market segmentation by volume (m), 2007-15
Germany
Figure 6: Germany – Travel & tourism: market segmentation by volume (m), 2007-15
Italy
Figure 7: Italy – Travel & tourism: market segmentation by volume (m), 2007-15
Russia
Figure 8: Russia – Travel & tourism: market segmentation by volume (m), 2008-15
Spain
Figure 9: Spain – Travel & tourism: market segmentation by volume (m), 2011-15
Turkey
Figure 10: Turkey – Travel & tourism: market segmentation by volume (m), 2009-15
UK
Figure 11: UK – Travel & tourism: market segmentation by volume (m), 2007-15
Spending on travel and tourism
Figure 12: Spending* on travel & tourism in Europe, 2016, 2017 & 2027
Departures from European countries
Figure 13: Number of trips to European destinations*, by European source market, 2012-15
Figure 14: Holiday trips taken, by European country, 2012-15
Figure 15: Number of tourists who took a personal trip of 4 nights or more, by European country, 2010-15
Accommodation capacity
Figure 16: Number of accommodation establishments*, by European country, 2010-15
Figure 17: Bed places* in accommodation establishments, by country, 2010-15

DECEPTIVE BOOKING PRACTICES
Legal background
Holiday fraud up for fifth year in a row
INTERCITY BUS TRAVEL
Impacting railroads
‘Cabotage’ an issue
FlixBus dominates the sector
A decentralised structure
A technology-based company
Exploring Europe for €99
FlixBus acquired Deutsche Post’s long-distance coach service
Long-term synergies

SHARING-ECONOMY IMPACT
Airbnb – A major presence in France
Île-de-France Airbnb’s biggest market
A ten-fold increase since 2012
Airbnb expands into holiday rentals
Airbnb acquires Luxury Retreats
Airbnb has taken over two German rental platforms
Fewo Vista
Vacaleo

BRAND CONSOLIDATION
One brand TUI
TUI’s rebranding timeline
Belgium, Nordics and France with the UK and Ireland still to come
Thomas Cook more prominent

DESTINATION TRENDS
North Africa and Turkey coming back?
North Africa recovering…
Germans returning to Egypt
French returning to Tunisia
…but Turkey lags
Turkey tourist numbers down again in February
Conflicting reports from tour operators regarding Turkey
Cash incentive offered to cruise ships
German Air passengers up year on year
Trump factor – US to be avoided?
Germans are rethinking US holidays
Hotel prices rise in Croatia
Terrorism a threat in the Philippines
Travel (from the US) to Russia on the upswing
Demand for the Trans-Siberian Railway
Operators scrambling to keep up with demand
For some, 2016 was already an up year
Dubai sees rise in tourism
Cyprus on the upswing
Lengthening the season
A 35% increase in arrivals targeted for next five years

DISTRIBUTION
Structural changes in the German travel market
DER Touristik’s Hartmann optimistic for future of organised travel
OTA market share slipping in France
Package-tour distribution channels
Figure 18: Package-tour distribution channels, by type of package, 1 November 2015-31 October 2016
Travel booking channels in Italy
Figure 19: Travel booking channels used by residents of Italy, by type of trip, 2015-16
Tour operators downsize in Swiss market
Hotelbeds consolidates bedbank sector
Hotelbeds acquires GTA
GTA
Ryanair to launch personalised offers
Connecting flights
Google introduces travel-package metasearch
Instant booking, a sine qua non for holiday rentals
HolidayCheck rates hotels
Company history
650,000 hotels reviewed
Targeting online package-tour market
Financial results 2016
Goals for 2017
New website aims to give agents online visibility

CRUISING – STILL TOP OF THE LIST FOR EUROPE
Figure 20: Trend in European cruise passengers, 2005-16
Germany leads the way
4 million German passengers by 2027?
River cruising enjoys steady growth too
Other markets growing too
Figure 21: Leading European cruise source markets, 2013-16
European cruise fleet
The Mediterranean
Northern Europe
Order pipeline
Figure 22: Worldwide cruise-ship orders, 2016-19
Home ports
Figure 23: Revenue passengers – Major European home ports, 2013-15
Embarkations and port-call visits
Figure 24: Trend in European cruise embarkations & port-of-call visits, 2010-15
Figure 25: Number of passengers (000) in leading European cruise ports, 2015

MAJOR PLAYERS IN EUROPEAN LEISURE
Figure 26: Top 10 European tour operators, FYs 2015 & 2016
TUI
SWOT analysis
TUI becoming a travel content business
Controlling the supply chain
Revenue down slightly in 2015/16
Figure 27: turnover by segment for 2014/15-2015/16*
Figure 28: EBITA* by segment, 2014/15-2015/16
Q1 loss reduced
Outlook for FY 2017
Figure 29: Outlook for FY 2017*
TUI Group has sold Hotelbeds
TUI unloads Travelopia
50 specialist brands
travel.me – TUI’s branded content portal
Going global
IT to drive TUI’s global expansion
TUI Hotels & Resorts
Figure 30: Hotel beds by region, 2016
Figure 31: Hotels by asset management structure, 2016
Figure 32: TUI’s hotel portfolio, by brand & concept, FY 2015-FY 2016
Hotel group expansion
RIU
Ownership structure
Figure 33: Location of RIU hotels by region, country & resort, 2016
Holiday hotels
Figure 34: RIU hotels that operate with an adults-only format, 2016
RIU’s city hotels
RIU upgrades
Figure 35: Development specifications for RIU, 2017

TUI BLUE
Figure 36: TUI BLUE portfolio, 2017
The latest TUI BLUE
Figure 37: Development specifications for TUI Blue, 2017
Robinson
Guest profile
Figure 38: Robinson club location, 2017
Robinson expansion and upgrades
Figure 39: Development specifications for Robinson, 2017
TUI Magic Life
Figure 40: TUI Magic Life’s portfolio, by country, 2017
Figure 41: Development specifications for TUI Magic Life, 2017
TUI Sensitori
Figure 42: Development specifications for TUI Sensitori, 2017
TUI Sensimar
Figure 43: Development specifications for TUI Sensimar, 2017
TUI Family Life
Figure 44: The TUI Family Life portfolio, 2017
Figure 45: Development specifications for TUI Family Life, 2017
TUI doubles hotel portfolio for summer 2017
TUI cruises
TUI Cruises
Hapag-Lloyd Cruises
Thomson Cruises
Thomson’s new ships

THOMAS COOK
SWOT analysis
Figure 46: Thomas Cook’s results for FY, 2015-16
Thomas Cook’s strategy
Thomas Cook hotels
Pipeline of new hotels
Casa Cook Kos
Casa Cook Majorca
Sunprime Hotels Tenerife
Sunwing Family Resorts

SENTIDO
SunConnect
smartline
Germans and Brits to share more Cook hotels
£21-million deal with Webjet
Summer 2017 bookings
Continental Europe strong
UK summer bookings flat
UK going upmarket
Condor under pressure
Figure 47: Condor results for FY 2015-FY 2016
‘Fast Track’ measures
Competition heating up
Cook takes over 100% of UK retail JV
Closing 39 UK stores
High-street retail still important
Thomas Cook and Hotelplan co-operation
China connection
JV formed

DER TOURISTIK
SWOT analysis
New structure
Apollo
Figure 48: Financial results for DER Touristik AB, 2008-15
Novair
Kuoni Travel UK
Destinations
Figure 49: Top 20 destinations for Kuoni UK tours in 2016 & 2017
Figure 50: Kuoni UK’s top ten guided tours in 2016 & 2017
Distribution
International expansion with Avigo
Cruises
Cruising trends
Same-sex honeymoons
Figure 51: Top LGBT honeymoon destinations, 2016
Foothold in Eastern Europe
Travel agencies and hotels

FTI TOURISTIK
SWOT analysis
Sales up 5% in FY 2015/16
BigXtra
9vorFlug
LAL
sonnenklar.TV
TVG
driveFTI
FTI Cruises
FTI Ticketshop
fly.de
LABRANDA Hotels & Resorts
Figure 52: LABRANDA Hotels & Resorts' portfolio by location, 2017
Meeting Point International
Meeting Point Rent-A-Car
Youtravel
erf68, travianet and touristic24
A luxury brand for FTI?
Expansion in Dubai
FTI enters Dutch market

CLUB MED
SWOT analysis
A return to profitability
GO for Ch@nGE
70 resorts and 24 destinations
Figure 53: Club Med’s resort portfolio, 2017
New resort openings
Chinese market

ALLTOURS
SWOT analysis
A change in leadership
alltours philosophy and strategy
Group structure
Byebye
Reiseportal GmbH
allsun hotels
Figure 54: Alltours’ portfolio of allsun hotels, 2017
‘allvital’ sports
KomfortPlus
Other hotel brands
alltours growing in Spain
Barcelona, Costa Brava and Costa Dorada new to programme
Prices for Spain going up

HOTELPLAN
SWOT analysis
Hotelplan’s business units
Figure 55: Turnover by strategic business unit, 2016
Hotelplan Suisse
Recap 2016
bta first travel AG
Recap 2016
Hotelplan UK
Inntravel
Explore
Recap 2016
Holiday Home Division
2016 recap
bedfinder
Figure 56: bedfinder’s position as a travel intermediary, 2017
2016 recap
Hotelplan holidays for Google
Hotelplan Italia sold

ALPITOUR
SWOT analysis
Tour operating
Aviation
Hotels
Figure 57: The VOI Italia hotel portfolio, by location, 2017
Distribution

SCHAUINSLAND REISEN
SWOT analysis
Distribution
Destinations
Hotel partners
Airline partners
Current trend
Winter season 2017/18

FRAM
SWOT analysis
FRAM purchased Plein Vent and Tourivac
FRAM acquired by LBO
Club hotels expanding
Grading scheme
An objective of 30 Framissimas
Olé clubs to be continued
Pricing strategy
An increase in round tours
A major TV ad campaign
FlexiFram on Frampro.fr

KUONI NOW A B2B TRAVEL SERVICES COMPANY
GTA sold to Hotelbeds.com
Figure 58: Kuoni Group’s financial results, by reportable segment (CHFm), 2015-16
MAJOR OUTBOUND MARKETS
Figure 59: Leading outbound travel markets, 2014-15
Figure 60: Leading outbound travel markets, 2014-15 (continued)
Germany, the UK, France and Italy

GERMANY
Travelling longer and spending more
Figure 61: Holiday trips (5 days or more), 2015-16
Figure 62: Short holiday trips (2-4 days), 2015-16
Destination trends
Figure 63: Top 10 domestic & foreign destinations for German holidaymakers*, 2016
Long-haul travel
Short breaks
Figure 64: Short trips* – Type of holiday & accommodation, 2016
A boom in urban short breaks
Figure 65: Short holiday trips – City ranking domestic & abroad, 2016
Content marketing
Figure 66: Preferred content for inspiration, 2016
How trips are organised and booked
Figure 67: Holiday organisation & booking, 2006 & 2016
Outlook for 2017
Holiday rentals in demand
Tour operators
Flat summer sales as of February
Figure 68: Top-8 air package-tour operators* on the German market, 2014/15-2015/16
TUI Germany sales up by 6%
Thomas Cook Germany doing better in 2017
DER Touristik’s Meier’s Weltreisen is Germany’s favourite
FTI Group, the best of the majors
alltours hopes to rebound
Schauinsland-Reisen stands pat
Studiosus Marco Polo
Vtours
Sterling results in 2016
Airlines compete with tour operators
Competition heating up
Revenues stagnating for German travel agents
UK
Figure 69: UK outbound holiday travel departures, by month, 2014-16
Figure 70: UK outbound travel*, by region (000), 2014-16
UK outbound travel will “decrease significantly”
Britons’ post-Brexit concerns
Weak Pound top concern
Fewer searches for EU destinations
Airfares have declined
Results correlate with referendum voting pattern
Where the Pound stretches furthest
Prices have declined in some areas
Meal costs important deciding factor
Turkey cheap due to slide of Lira
Staycations on the rise
Two thirds of trade see rise in staycations
Figure 71: Profile of domestic tourism industry snapshot survey respondents, 2017
Brexit impact
Figure 72: Looking ahead, compared to the past 12 months, how do you think customer spending habits will change over the next 12 months? (as of march 2017)
Figure 73: How optimistic do you feel about the future of the domestic travel trade? (as of march 2017)
Booking trends
Figure 74: Have you seen a rise in visitors/bookings from any of the following groups? (as of march 2017)
Figure 75: Over the last 12 months have you seen a rise in online/app bookings? (as of march 2017)
Customer expectations
Figure 76: What do you think are the top 3 things your customers look for in an outing?, 2017
Key trends emerging over coming 12 months
Families to spend more on their holiday
Weak Pound impacting school travel
Term-time holidays banned by court ruling
Supreme Court upholds ban
Lower-court ruling overturned
A question of state interference?
Potential impact on travel

FRANCE
Figure 77: Trend in the departure rate of the French for short and long holidays, 2008-16
Tour-operator sales
Figure 78: Travel packages & flight-only tickets sold by tour operators in France, 1 November 2015-31 October 2016
Figure 79: Revenue generated from the sale of packages & flight-only tickets by tour operators in France, 1 November 2015-31 October 2016
Travel-package sales
Figure 80: Travel packages sold in France, 1 November 2015-31 October 2016
Seasonality of travel-package sales
Figure 81: Travel packages sold in France, by season, 1 November 2015-31 October 2016
Package-tour destinations
Medium haul
Figure 82: Top-10 destination for medium-haul travel packages, 1 November 2015-31 October 2016
Figure 83: Top-10 destination for medium-haul travel packages, 1 November 2015-31 October 2016 (continued)
Long haul
Figure 84: Top-10 destination for long-haul travel packages, 1 November 2015-31 October 2016
Figure 85: Top-10 destination for long-haul travel packages, 1 November 2015-31 October 2016 (continued)
ITALY
Figure 86: Tourist trips undertaken by residents of Italy, 2014-16
Figure 87: Overnights on tourist trips undertaken by residents of Italy, 2014-16
Figure 88: Average length of stay for tourist trips undertaken by Italian residents, 2014-16
Figure 89: Tourist trips undertaken by residents of Italy by quarter, 2015-16

RUSSIA
Figure 90: Trend in Russian outbound travel (000), by selected country, 2014-15
Georgia growing destination for Russians
An improving outlook
Russian tourist spending up 40% in 2016
Outlook for 2017
Turkey hopes to get 5 million Russians in 2017
Flights to Egypt hopefully to resume soon
Russians in Spain
Vietnam up-and-coming destination for Russians
Russian tourist office in Hanoi
Visa restrictions eased
A co-operation agreement between VNAT and Rostourism
Airlines expanding routes to leisure destinations
Pobeda expands network
Legacy carriers increase flights to holiday destinations
More routes to Asia

WHAT NEXT?
Holiday rentals hand in hand with staycations
Brexit uncertainty for UK outbound market
Currency, healthcare, student exchanges
Hotel and cruise capacity a differentiator
Control the customer experience
Tour-operator packages have a good future
Customer reps an added security for holidaymakers
Accommodation-rental platforms will evolve
More infrastructure in destinations

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